freedom finance/paragon ppi claim

luckyc_2 · 17 September 2009 at 1:53PM

in september 2005 my partner and i applied for a loan from freedom finance for £25000. after answering questions over the phone relating to employment, sickness etc we were asked if we had insurance. we said we had life and mortgage insurance. the person on the phone organising the loan said that we should take their recommendation of taking out life sickness and redundancy as it would be prudent to fully protect this secured borrowing to the same level as a mortgage.
a few weeks later we were told the loan was approved with a company called paragon.
the credit agreement showed it was for a) £25100 (cash loan amount) b) ppi loan amount of £8785 and c) total amount of credit £33885.
the first payment to be made in november 2005 for £499.62 followed by 300 payments of £296.43. monthly interest rate0.793% APR 9.9%
the insurance would cover 120 months and assuming we keep to the terms this interest will be £14270 total price for cover £23055.
i did question why we had insurance but was told it was in our interests and we were both fully protected. not beinfg a financial genius i reluctantly accepted.
in april 2007 we managed to pay off the loan in full and asked for a settlement fee. having already paid £5538.93 since november 2005
paragon sent a settlement letter stating
current balance as at april 2007 £33399.10
interest due on 15th april 2007 £292.69
add interest from last payment due to april 2007 £144.30
add early settlement interest £1756.14
sub total £35592.23
less payment protection rebate if any £0.00
add legal and discharge fee £150.00
total amount payable to settle £35742.23
meaning awe paid a 25grand loan off for over 41 thousand pound.
on 9th september i wrote to paragon to try to see if i could reclaim ppi but was told i had to contact freedom finance as it was they who arrange the loan and paragon was not party to any discussions. this was their final response.
do i have a case? can i claim and how much for? should i write to paragon or freedom? any help would be great thankyou xxxx

di3004 · 17 September 2009 at 5:07PM

luckyc wrote: »

in september 2005 my partner and i applied for a loan from freedom finance for £25000. after answering questions over the phone relating to employment, sickness etc we were asked if we had insurance. we said we had life and mortgage insurance. the person on the phone organising the loan said that we should take their recommendation of taking out life sickness and redundancy as it would be prudent to fully protect this secured borrowing to the same level as a mortgage.
a few weeks later we were told the loan was approved with a company called paragon.
the credit agreement showed it was for a) £25100 (cash loan amount) b) ppi loan amount of £8785 and c) total amount of credit £33885.
the first payment to be made in november 2005 for £499.62 followed by 300 payments of £296.43. monthly interest rate0.793% APR 9.9%
the insurance would cover 120 months and assuming we keep to the terms this interest will be £14270 total price for cover £23055.
i did question why we had insurance but was told it was in our interests and we were both fully protected. not beinfg a financial genius i reluctantly accepted.
in april 2007 we managed to pay off the loan in full and asked for a settlement fee. having already paid £5538.93 since november 2005
paragon sent a settlement letter stating
current balance as at april 2007 £33399.10
interest due on 15th april 2007 £292.69
add interest from last payment due to april 2007 £144.30
add early settlement interest £1756.14
sub total £35592.23
less payment protection rebate if any £0.00
add legal and discharge fee £150.00
total amount payable to settle £35742.23
meaning awe paid a 25grand loan off for over 41 thousand pound.
on 9th september i wrote to paragon to try to see if i could reclaim ppi but was told i had to contact freedom finance as it was they who arrange the loan and paragon was not party to any discussions. this was their final response.
do i have a case? can i claim and how much for? should i write to paragon or freedom? any help would be great thankyou xxxx

Hi and welcome.;)

If you believe you have been mis sold for any reason, then give it a go.

You do not need to write the amounts on the letters, as they should have details on all calculations, where you can request in letter for them to post you a full detailed breakdown of calculations, especially if an offer etc.
However, be careful with low will offers, as you have been out of pocket due to have been mis sold this PPI.

The link below will give you more information, you will find templates and a checklist of mis selling reasons etc:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

Write to them by giving your reasons, they have 8 weeks in full to respond, you can use the templates if you want to or just as a guide with your own reasons, keep at them until they resolve, or until they issue you with the final decision which should enclose details of the Financial ombudsman service (FOS), you can take your complaint to these if your not satisfied with the outcome.

Post by recorded delivery as well, this is your proof of posting.

Also just to mention that whoever sold and arranged the finance, is the ones you write to.;)

Good luck with this and feel free to post up for further help if required and please keep us posted, cheers.

marshallka · 17 September 2009 at 5:27PM

As you state "the person said we should take their recommendation" does that mean that it was a choice here?? Sorry to ask but your posts inclines it?? If they gave you a choice as to the PPI then I would not use this on your reclaim letter as they could have proof otherwise (from what you are saying) but there are lots of other reasons on the reclaim guide too.

Good luck

marshallka · 17 September 2009 at 8:38PM

If Freedom do not uphold the complaint then you are eligible to take this complaint to the FOS which is one good thing as this was taken out after the FSA regulation of insurance.

luckyc_2 · 19 September 2009 at 12:40AM

the person said we should take their recommendation...it was not achoice and as i percieved it they said we must take out insurance or getting a loan would be difficult.

luckyc_2 · 19 September 2009 at 12:41AM

and thanks for the advice so far. will write to freedom and lets see what happens. fingers crossed

di3004 · 19 September 2009 at 11:25AM

luckyc wrote: »

and thanks for the advice so far. will write to freedom and lets see what happens. fingers crossed

Keep at them luckyc, fingers crossed for you.;)

HayleyJ_2 · 23 September 2009 at 9:04PM

Oh dear, I fear that this could be another Freedom/Paragon/Bespoke debarcle!!

Luckyc, the exact same thing happened to me - my loan was for the same amount and I paid over £8k more back when I redeemed due to bogus PPI. My loan was taken out in 2002, which was before Freedom/Paragon were regulated (which was 2007, so you fall into the same quandry, I believe).

I have found out - years after the fact - during the course of this reclaiming process, that Freedom did not act as a broker, but claim to have only "processed" the loan on behalf of a company called Bespoke Finance. When you ask Paragon to accept responsibility for the dodgy PPI, they will fob you off to Freedom. When you ask Freedom, they will fob you off to Bespoke.

The problem with Bespoke, is that they are based in Gibraltar and, as such, are not subject to ANY financial regulations or laws, so they offer absolutely no consumer protection - ZERO!

I have been trying to get my money back since 2007 and it was only this year that I found out about Bespokes involvement. I have now "re"complained to the FOS and also to the Finance & Leasing Association (who Paragon were regulated by) as I feel that Freedom and/or Paragon must accept responsibility for knowingly entering me into a financial agreement (without my consent) with a financial institution that afforded me absolutely no financial protection!

I am not alone. There have been a fair few people on this forum who have experienced the same misfortune. Marshalka has been hugely helpful - maybe he/she (sorry Marshalka!) can offer you some additional advice.

Keep me posted. I am looking to take this to Court as it is probably my only option. But I will keep fighting because I have found this to be massively unjust and I won't take it lying down!!

All the best,
Hayley

marshallka · 23 September 2009 at 10:01PM

Hayley, the Freedom complainer above will be OK with FOS as taken since regulations so Freedom will HAVE to admit to that one as ALL PPI sales had to have been regulated since January, 2005. As yours was before its more "convenient" to say Bespoke sold it.

Good luck with your complaint and glad you have not given up.

HayleyJ_2 · 24 September 2009 at 9:19AM

Excellent news for Luckyc - glad to see that Freedom won't get off lightly with that claim!

Go Luckyc!!

luckyc_2 · 26 September 2009 at 11:38AM

well the letter been sent so still waiting to see what happens. marshallka that advice about fos was invaluable and put it in the letter so they dont try and fob me off elsewhere. thanks
hayley i wish you all the best with your claim. it really is about time that some financial institutes were given a shake up. they been getting away with taking advantage of people in need for so long. how many more try tricks like that?

freedom finance/paragon ppi claim

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